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Industry Segment, Geographic Information and Significant Customers
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Industry Segment, Geographic Information and Significant Customers
14. Industry Segment, Geographic Information and Significant Customers

The Company operates in two reportable segments, the home robots division and the government and industrial robots division. The nature of products and types of customers for the two segments vary significantly. As such, the segments are managed separately.

 

Home Robots

The Company’s home robots division offers products to consumers through a network of retail businesses throughout the United States, to various countries through international distributors and retailers, and through the Company’s on-line store. The Company’s home robots division includes mobile robots used in the maintenance of domestic households.

Government and Industrial Robots

The Company’s government and industrial robots division offers products through a small U.S. government-focused sales force, while products are sold to a limited number of countries, other than the United States, primarily through international distributors but also through a small internationally-focused sales team. The Company’s government and industrial robots are used by various U.S. and foreign governments, primarily for reconnaissance and bomb disposal missions.

The table below presents segment information about revenue, cost of revenue, gross margin and income before income taxes:

 

                         
    Fiscal Year Ended  
    December 31,
2011		     January 1,
2011		     January 2,
2010		  
    (In thousands)  

Revenue:

                        

Home Robots

   $ 278,551     $ 229,348     $ 165,860  

Government & Industrial Robots

     186,949       171,604       132,757  
   

 

 

    

 

 

    

 

 

  

Total revenue

     465,500       400,952       298,617  
   

 

 

    

 

 

    

 

 

  

Cost of revenue:

                        

Home Robots

     152,723       137,568       112,429  

Government & Industrial Robots

     120,659       117,952       94,992  
   

 

 

    

 

 

    

 

 

  

Total cost of revenue

     273,382       255,520       207,421  
   

 

 

    

 

 

    

 

 

  

Gross margin:

                        

Home Robots

     125,828       91,780       53,431  

Government & Industrial Robots

     66,290       53,652       37,765  
   

 

 

    

 

 

    

 

 

  

Total gross margin

     192,118       145,432       91,196  
   

 

 

    

 

 

    

 

 

  

Research and development

     36,498       24,809       14,747  

Selling and marketing

     58,544       50,535       40,902  

General and administrative

     43,753       36,618       30,110  

Other income (expense), net

     218       504       (81 ) 

Income before income taxes

   $ 53,541     $ 33,974     $ 5,356  
   

 

 

    

 

 

    

 

 

  

As of December 31, 2011, goodwill of $7.9 million and purchased intangible assets, net of $2.5 million recorded in conjunction with the acquisition of Nekton in September 2008, as well as the $2.5 million investment in Advanced Scientific Concepts, Inc., are directly associated with the government and industrial division. Other long lived assets are not directly attributable to individual business segments.

 

Geographic Information

For the fiscal years ended December 31, 2011, January 1, 2011 and January 2, 2010, sales to non-U.S. customers accounted for 45.5%, 42.1% and 33.3% of total revenue, respectively.

Significant Customers

For the fiscal years ended December 31, 2011, January 1, 2011 and January 2, 2010, U.S. federal government orders, contracts and subcontracts accounted for 36.1%, 38.4% and 36.9% of total revenue, respectively. For the fiscal year ended December 31, 2011, and January 1, 2011, the Company generated 9.4% and 17.4%, respectively of total revenue from The Boeing Company as a subcontractor under U.S. federal government contracts. For the fiscal years ended December 31, 2011, January 1, 2011 and January 2, 2010 approximately 74.0%, 65.7% and 56.0%, respectively, of our home robot product revenue resulted from sales to 15 customers. For the fiscal year ended December 31, 2011 the company generated 23.6% of its total revenue from two of its international distributors of consumer products: Sales on Demand Corporation (representing its Japanese market) and Robopolis (one of its European distributors).